BONK’s Market Cap Sheds Nearly $1B, Threatens to Break Key Support

Key Takeaways

• Meme coin BONK faces significant bearish pressure as its market cap sheds nearly $1 billion.
• The price has fallen below the key MAs, indicating that it could slide below major support levels.
• Analysis of the 4-hour chart shows that BONK’s correction has not ended, but how low will it go?

BONK, the most valuable memecoin by market capitalization on the Solana network, has experienced a 13% price decline over the past seven days.

Following the decrease, BONK’s price now trades at $0.000028. The price decline has also extended to the project’s market cap, which once hit $4 billion.

With the memecoin market sinking, will BONK recover?

Bonk Loses Huge Share of Its Value

On Dec. 12, BONK’s market cap was over $3 billion. However, it has fallen to $2.14 billion  at the time of writing, implying a decrease of almost $1 billion.

The 13 % drop in price over the last month played a key role in sending the market cap further down.

From a technical perspective, the daily chart shows that BONK has dropped below the 20 EMA (blue).

When the EMA rises and is below the price, the trend is bullish. However, when it turns downward and is above the price, the trend is bearish.

In addition to the 20 EMA, BONK’s price has also fallen below the 50 EMA (yellow). This drawdown reinforces the bearish bias surrounding the memecoin.

Due to this position, BONK could slip below the underlying support at $0.000022. If validated, this could accelerate the downtrend toward $0.000018, which is the next support region.

BONK Price Prediction: Meme Coin Becomes Weak

In the meantime, the 4-hour chart reveals that the Ichimoku Cloud has risen above BONK’s value. Typically, when the cloud is below the price, it signifies support. However, in this instance, the position indicates resistance to the current trend.

The red cloud, formed by the gap between the Senkou Span A (green) and Senkou Span B (orange), reinforces this bearish momentum.

The cloud’s downward slope further supports the persistent selling pressure, hinting at potential continued weakness in BONK’s price movement.

With the current outlook, BONK might drop as low as $0.000018. However, if BONK’s price manages to hold above the 0.236 Fibonacci level at $0.00003, it could drive renewed bullish momentum.

If sustained, this might enable the price to challenge the $0.000033 resistance.

In that scenario, this could lead to a breakout above $0.000033, with a short-term target of around $0.000037. Also, BONK’s market cap could climb above $4 billion again